Asset Management Plan


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Asset Management Plan

  1. 1. - 1 - ASSET MANAGEMENT PLAN Carol Shaw Director of Finance and Resources July 2003
  2. 2. - 2 - 1.0 Introduction Asset Management Planning 1. Asset management can be described as “making the best use of assets in terms of specific benefits and financial return” (DTLR Best Practice Guide, 2000). It has a long term dimension and is concerned with Council wide management issues. In particular, it is associated with: • An integrated approach between service areas and the corporate centre. • Separate responsibility for strategic asset management. • Explicit authority wide objectives for holding property and other assets. • Changes to the portfolio consistent with corporate objectives. • Sufficient data to analyse the performance of the portfolio and to make strategic decisions. 2. This Asset Management Plan (AMP) sets out the overall direction and framework for managing the Council’s assets and pulls together cross service issues into an authority wide plan. It is linked, therefore, to the Council’s corporate objectives and is consistent with and compliments the Council’s Capital Strategy, which sets out the Council’s approach to capital investment. 2.0 Organisation Arrangements for Asset Management Planning Elected Members 3. The Council attaches a high priority to asset management and the resource implications of delivering the Council’s policies and priorities. In recognition of this importance the responsibility for asset management lies with the Executive Leader of the Council. As the relevant portfolio holder, the Leader is the political lead on asset management. 4. All land and property matters are functions of the Council’s Executive, under executive arrangements established by the Local Government Act 2000. Any decisions which need to be made in relation to acquisition, disposal, or management of land or property are made by the Executive, although the Council’s Overview Committee dealing with Policy, Strategy and Finance, will from time to time review policy and will make recommendations to the Executive. The Executive also deals with management matters relating to the Council’s Housing stock. Corporate Team 5. Property is owned corporately by the council, with its stewardship the responsibility of the Director of Finance and Resources (The Corporate Property Officer) and the Solicitor to the Council. The Executive has the overall control for policy, strategy, finance and ensuring the efficient management of the portfolio. 6. The Council has agreed the responsibilities for Asset Management in the following areas. • Strategic Asset Management. • Day to day property management. • Each property service. • Capital programme co-ordination. 7. The following officers were assigned the above responsibilities: Role Responsibility of: Strategic Asset Management (CPO). Director of Finance and Resources Day to day property management. Head of Estates Each property service. Relevant Heads of Service Capital programme co-ordination. Head of Strategic Finance / Corporate Property Officer. 8. Rather than establishing a new corporate Asset Management Group, the existing Programme Officers Group was assigned the responsibility for Asset Management and the Capital Strategy. The group, which meets monthly, is comprised of the heads of service for the Council’s direct services, the Director of Corporate and Community Strategy and the Director of Finance and Resources. The group is responsible for integrating the Councils service strategies under the overall guidance of the Community Strategy and the Council’s corporate aims and objectives and service planning process. In relation to asset management, the Programme Officers Group is responsible for co-ordinating all areas of strategic property management, and has the following terms of reference:
  3. 3. - 3 - Terms of Reference • To act as the officer forum for consideration and development of strategic asset management issues within the authority. • To monitor and review of the capital programme. • To challenge and review the use of property, e.g. the provision of Leisure facilities and the decision to pursue the establishment of a leisure trust. • To approve any acquisitions, e.g. Faretec. • To oversee the development of the Council’s property data management processes and procedures. • To support the CPO in consulting with users and interested persons and takes into account vi ews expressed throughout the asset management process. • To consider the implications and actions arising from the Disposal strategy and subsequent disposal programme. • Liaising with the Housing Department in the production of the Housing Business Plan and to ensure that the Council’s assets are considered and managed as a whole. • For monitoring the ongoing property review. • For investigating options for the cross service and shared use of assets, e.g. letting part of the Civic offices and the Depot facility to other organisations. • For the identification of surplus / under performing property. • Identifying and acting upon property implications arising from the Community Strategy, Best Value reviews, management reviews, strategic plans etc. 9. In addition, the Programme Officers Group approve both the Capital Strategy and Asset Management Plan prior to these being submitted to the appropriate Overview Panel, Executive and full Council for approval. 10. The Director of Finance and Resources (as Corporate Property Officer) has the authority and ability to implement those actions necessary to facilitate asset management and is a member of and reports to the Programme Officers Group. The CPO is accountable to the Executive portfolio member for Policy, Strategy and Finance on all property matters, the Asset Management Group and the Chief Executive and has the overall responsibility for the following: • Developing the asset management planning process within the council. • Strategic asset management within Fareham Borough Council. • Developing the capital strategy and all aspects of the council’s annual single capital pot submission. • Consultation with users and interested persons. • Co-ordinating the process across and between services. • monitoring and reviewing the implementation of the actions contained within this Asset Management Plan. • the overall strategic management of the authority’s land and property assets. • ensuring that a clear link is established between each property and its contribution to the council’s corporate aims and objectives. • the revenue considerations associated with corporate capital decisions are considered together with whole life costs and project appraisal. • for assessing the implications and required actions resulting from the analysis of the property performance indicators (local and national). • Reviewing and implementing data systems to meet the needs of the AMP process. 11. The Corporate Property Officer is a member of the Chief Executive’s Management Team, jointly leads the Programmers Group with the Director of Corporate and Community Strategy and attends all meetings of the Executive. This ensures that property issues are fully considered as major policies, projects and action plans are developed through to when decisions are made on them. She also led a project team which developed the Council’s business planning process. This process ensures property issues are considered in all work group business plans. 12. The key outcomes of the Programme Officers / Asset Management Group are communicated to all staff through the Council’s cascade process. 13. The decision making framework within Fareham is represented diagrammatically below:
  4. 4. - 4 - The Decision Making Framework The Management and Implementation Framework Corporate Property Officer The Council Executive Overview Panels Chief Executive's Management Programme Officers (AMP Group) Leisure and Environment Housing Planning and Transportation Finance and Resources 14. As part of the ongoing development of asset management within the Council, reports on the use and suitability of property are reported by Chief Officers. These reports guide the corporate asset management process and provide a vehicle for identifying key investment issues relating to the property portfolio. 15. During 2002-2003 reports have been submitted to the Executive / relevant Overview Panel on a number of key areas where the use of land and property affects service delivery, for example: 16. On 1 July 2002 the Executive decided that, following consultation, further investigation should take place into the possible sale of the Fareham Community Centre site at Queens Road, with the existing users being accommodated within Ferneham Hall, Fareham Leisure Centre or other community centres. 17. A report to the Executive on 24 March 2003 confirmed that the community centre would remain in operation for a further three years. Following this period, the land is to be sold for redevelopment, probably for affordable housing, and the users relocated. 18. The reason for this decision is that it allows the Council to realise a capital asset in the long term while allowing time for existing users to find alternative venues, and new facilities to be provided by the Council, if appropriate. Consideration of the future of this asset took into account not just leisure provision, but also its relation to economic prosperity, affordable housing provision and the overall appearance of the town centre. 19. Other reports have been submitted on: • The disposal of Fort Fareham Business park • The potential sale of Roman Grove open space. • The disposal of the former Whiteley Community Centre • The future of Faretec, an economic development initiative. • The successful conclusion of the development agreement, and the start on site of the Market Quay leisure and retail development. • The potential development of the former foundry and “Island” sites. • The potential redevelopment at Osborn Road South • The establishment of a Leisure Trust.
  5. 5. - 5 - Organisational linkage with Best Value 20. Each Best Value thematic service review is required to investigate how the service manages land, buildings and other assets to ensure they are managed in such a way as to support service policy and strategy and contribute to the Council’s corporate objectives. To ensure that the process has been followed with sufficient rigour, each service review is lead by a sponsor director and the team comprises, among others, two elected councillors. The property implications of each review are reported to the Programme Officers Group to ensure cross service consideration in the context of corporate asset management planning. 21. The Best Value Performance Plan for 2003 – 2004 includes the corporate vision, values, objectives and action plan. The objectives are summarised in Appendix A. 22. The capital programme is developed in line with the Best Value service review timetable. The Council has a corporate Best Value thematic service review process, which includes the in house “Quality Audit Process”. The key purpose of the quality audit is to gauge “where we are now” in relation to the service or function under review. In this way the potential for improvements can be identified, mapped and monitored between successive reviews. Section F of the quality audit is “Resources and Partnerships”. This element looks at how the service manages resources, information, suppliers, technology, land, buildings, equipment and other assets. The audit aims to measure whether resources are managed in such a way as to support service policy and strategy. 3.0 Consultation 23. Consultation is a key aspect of the Government’s modernisation agenda. To be effective, consultation must cover all stages through from the initial planning to the final delivery of services and must be on- going. The diagram below clearly demonstrates this: Local Strategic Partnership Community Strategy Consultation Corporate Aims and Objectives Key Strategies AMP / Service and Cross Cutting Strategies Resource Strategies Service Delivery Service Users Consultation Best Value Reviews Consultation Interested Parties Consultation
  6. 6. - 6 - 24. Consultation is a powerful tool for improving the quality and cost effectiveness of services but it is not something that can be embarked on lightly. It must be thought about, planned and then integrated into the Council’s planning and service delivery processes. The Council has approved a formal consultation strategy that offers guidance on the options available and the steps to consider to ensure that consultations are undertaken within the corporate framework are aimed at the correct audience and are rigorous with valid outcomes. 25. The strategy stresses that reliance should not be placed on the traditional methods of consultation. Fareham is providing information through web pages, making questionnaires available electronically and allowing e-mail to be used for responses. 26. While consultation would be expected in relation to major issues, it should be stressed that even for relatively minor schemes, such as environmental improvements and parks and play schemes; there is significant consultation in the form of surveys, questionnaires and public exhibitions. 27. The Consultation Strategy also aims to guide Best Value service review teams through the options available and the steps to consider to ensure that consultations are: • undertaken within the corporate framework. • aimed at the correct audience. • rigorous with valid outcomes. 28. In addition to the Consultation Strategy, the Council has an approved corporate thematic service review process, which requires all best value reviews to produce a consultation plan for the review in question. 29. The Head of Estates, as the nominated property manager, conducts monthly consultation with the users of the in house Estates Business Unit. 30. Over the last twelve months there have been a number of specific consultation exercises carried out that have implications for asset management. These include the users of Fareham Community Centre and the public with regard to the future provision of leisure facilities in the Western Wards. 31. The Housing Department carry out surveys of tenants for all building works. With each repair request a confirmation form is sent, including a satisfaction questionnaire. After each building contract, a satisfaction survey is sent to tenants. 32. As part of the Best Value review of the Commercial Estates service, a tenant’s satisfaction survey was undertaken. This revealed that the tenants at Fort Fareham Business Park were dissatisfied with the standard of Grounds Maintenance. This problem was addressed by the service review team, and appropriate action included within the resultant action plan which was approved by the former Land and Property Sub-Committee on 12 December 2000. 33. A key aspect of Best Value service reviews is consultation with interested persons including local people, service users and employees. By necessity the best value review process takes account of the property aspects of service delivery and in so doing uses stakeholder feedback in making recommendations. 34. As part of the Best Value review of the Commercial Estates service, a tenant’s satisfaction survey was undertaken. 35. As part of the Best Value (management review) review of Operational Property service, a survey of managers was undertaken to assess their satisfaction with the provision of office accommodation at the Council’s main operational property. 36. It is intended to conduct a satisfaction survey of visitors to the Council’s operational properties in the autumn of 2003 to assess their level of satisfaction and to identify any problems or areas that require improvement. This data will be used to develop a local performance indicator to measure user satisfaction with those Council properties open to the public. 37. The Housing Department carry out surveys of tenants for all building works. With each repair request a confirmation form is sent, including a satisfaction questionnaire. After each building contract, a satisfaction survey is sent to tenants. Change in Asset Use / Space Utilisation resulting from consultation processes
  7. 7. - 7 - Non operational property 38. Following the unsuccessful bid to the National Lottery Heritage Fund for funding to restore Fort Fareham, and consultations with the tenants, investigations were undertaken into alternative use of this substantial property. Options included: • Carrying out of all the outstanding works to the Fort. • The sale of the freehold of the whole Fort (A), and of the outer fortified ring (B). • The closure of the outer ring. 39. In January 2003, following a tender for the freehold of the property, the freehold of the whole property was disposed of as this represented the best option in terms of future liability and in financial terms. This also produced a capital receipt of £1.47 million and significantly improved performance against the surplus property local performance indicator. Operational Property 40. Satisfaction with accommodation is measured by means of manager surveys. The last of these in August 2001 indicated that nearly 70% of managers considered that the space allocated to them was sufficient. A follow up survey will be carried out in summer 2003. Residents Survey 41. As a part of the statutory duty on local authorities for public participation and consultation, the Council has undertaken regular surveys amongst residents. The first survey, in Autumn 2000, collected the data required to provide Best Value performance indicators. The Council carried out further surveys in both 2001 and 2002 each concentrating on a number of specific issues. The main objective of the surveys is to establish levels of resident’s satisfaction with a range of services provided by the Council and to assess attitudes to a number of other issues. Nothing specific to asset management has been included within previous surveys, although active consideration in being given to including a number of asset management related questions in the 2003 residents survey. 4.0 Data Management General 42. The Council recognise that maintaining adequate property information is key to successful asset management. Data collection is essential in ensuring that there is an up to date inventory of the Council’s assets. Pertinent information must be available from which to make decisions about capital and revenue expenditure in relation to repairs and maintenance, and overall asset management. 43. The management of all Council land and property related data is the responsibility of the Estates section managed by the Council’s day to day property manager. This section is responsible for the systems on which all core and intermediate data is currently held. This includes assets owned, their size (e.g. floor / site areas), tenure, age, occupancy information, rent / cost information, condition etc. Assets Held 44. The Council owns a wide range of properties from the ground lease on Fareham shopping centre to land occupied for allotments and grazing, all property being identified by a Unique Property Reference Number (UPRN). 45. The property portfolio has been categorised in line with the property categories adopted by CIPFA, and is summarised below: Category CIPFA Classification Number of Properties Value Non Operational (General) 95 £33,491,336Non Operational Surplus Property 4 £191,000 Sub Total 99 £33,682,336 Community Assets 14 £1,121,264 Infrastructure 9 £947,496 Operational Other Land & Buildings 50 £18,891,962 Sub Total 73 £20,960,722 Grand Total 172 £54,643,058
  8. 8. - 8 - Validity of Information 46. The accuracy and validity of the Council’s property data is checked annually by reconciling the information held in the Council’s property and financial systems. In addition, on going validity checks are made as part of the on going property review and in the transfer of the data to the integrated property management system. The Council’s internal audit section also regularly check the validity of this information, with an audit having been completed in Autumn 2002. The Property Terrier 47. The Council maintains a property terrier system, which is a unique map based record of all the council’s property interests. The property terrier comprises two parts: a map base with land parcels recorded and cross referenced to ledgers holding the information linked to the land parcels. The terrier system incorporates a unique property reference number (UPRN) for all property. An “essential” requirement of the contract specification for the integrated property management system was that a field be available for a second UPRN in the format defined in BS 7666. This will allow the PMS to be linked to a corporate property database, the developing Local Land and Property Gazetteer (LLPG), the National Land and Property Gazetteer (NLPG) and the National Land Information System (NLIS). Asset Register 48. The Council is following the Chartered Institute of Public Finance and Accountancy (CIPFA) recommendations regarding a system of capital accounting for local authorities. These include having in place a register of all council assets including not only land and property, but, for example, plant and machinery, vehicles, furniture and valuable items in council ownership such as paintings, antiques, together with asset rents and asset valuations. 49. The asset valuations have been undertaken by the estates business unit with the value of the Council’s property interests excluding the housing stock currently £54m. Property Management System (PMS) and Integration with Financial Systems 50. A review by the Corporate Property Officer and the Head of Estates identified the need for an integrated property management system, and a project to specify, procure and implement the system was instigated. A full survey of the asset management and property requirements was undertaken in conjunction with the Head of Strategic Finance to produce a detailed contract specification. The first stage of the project to implement an integrated Property Management System (PMS) i.e. the specification and procurement of the system has been completed. The specification of the system involved a complete and through review of the Council’s data requirements in relation to its property holdings and these were subject to ongoing analysis during the evaluation of the alternative systems. The system supplied by the Technology Forge has been purchased and the implementation is underway following the PRINCE 2 project management methodology. 51. The second stage, the transfer of existing data to the new system is expected to be labour intensive and completion is targeted for April 2005. Within this the following milestones have been agreed for the implementation of individual modules of the system: • Asset Register / Core Data June 2003 • FMS interface June 2003 • Works Ordering July 2005 • Condition Surveys / Intermediate Data August 2003 • Maintenance Module / Transient data September 2003 • Estates Module April 2005 52. The system takes account of all the relevant types of data required for asset management, from core date such as address, size, description of use and legal interests to intermediate data that needs frequent updates on issues like condition. rents and uses. The final category of data collected is the transient data, which needs more regular monitoring on energy costs, maintenance requirements and other usage costs. 53. The system when implemented will also greatly aid in the achievement of full electronic service delivery, and will link to the Local Land and Property Gazetteer (LLPG) currently under development by means of the BS7666 based unique property reference number (UPRN) 54. Before and after the process of transferring the data from the original system to the database, all information shall be verified by the estates section and the financial services group to ensure its accuracy.
  9. 9. - 9 - 55. In order to ensure the integration of property and financial data, an interface between the PMS and the Council’s Financial Management System (FMS) has been produced, which will be subject to regular reconciliation. This interface allows central control of the property related data, and up to the minute data on maintenance and budgets. Training 56. Potential users of the property management system were identified and were actively involved in the preparation of the specification. Three groups of staff have now received training on the PMS: • Systems Administrators • Estates Maintenance staff • Estates Management staff • Accountancy staff. 5.0 Performance Management and Monitoring. 57. The Council has an effective Corporate Performance Management framework. It incorporates annual review of the Council’s vision for the Borough, corporate objectives, values and prioritized actions following community consultation. Both members and officers are involved in this process and local strategic partner organizations also participate. A summary of the process is attached at appendix D. 58. As the lead officer for asset management, the CPO is responsible for ensuring that the Council’s property portfolio performs to its optimum. The Council has developed its approach to asset management to ensure that assets are utilised to their maximum potential in delivering good quality services and optimising financial return. Each July and November, a report is submitted to the Executive on the performance of the property portfolio against the local and national property performance indicators. 59. Achievement of the Council’s objectives is subject to on-going performance management and monitoring in accordance with the revised performance management and monitoring process approved by the Council’s Executive on 25 November 2002. 60. The AMP will assist the council in pursuing these objectives by creating a corporate process for optimising the contribution that the Council’s assets make to delivering quality services to the community. More specifically it will: • Help to prioritise Council’s decisions on spending • Integrate property and other asset decision making into the Council’s corporate planning process • Identify opportunities for innovation • Provide a context for evaluating capital projects • Identifying assets suitable for disposal or development • Identify opportunities to increase income generation or reduce expenditure. 61. The Council’s commercial (non operational) property portfolio which includes amongst others, the ground lease for the shopping centre, the land and property for the Market Quay development, Palmerston Business Park and parts of Newgate Lane industrial estate contributes to corporate objective number six, i.e. a dynamic, prudent and best practice Council. 62. The non-commercial (operational) portfolio contributes to the corporate objectives in terms of direct service delivery rather than investment, economic development or development reasons. Although each individual property contributes to the delivery of services, for the purposes of this plan the table in Appendix B shows the categories of property holding and the objectives to which they contribute. Review Programme 63. A property review of the Council’s portfolio was completed in March 1997 which identified surplus assets to be included in the disposal programme. 64. The purpose of the review was to ensure that that the Council’s property was being utilised to its fullest extent, was suitable for its intended purpose and to explore the possibility of improving or restructuring existing lease arrangements and joint ventures with the private sector and other public bodies. The review aimed to bring into beneficial use or consider the disposal of any interest where retention was not justified. The review focused on optimising the benefits gained from the Council’s land and property resources and reducing property running costs. The resultant disposal programme was reviewed in June 2000.
  10. 10. - 10 - 65. Following approval of the revised property strategy 2000, a new property review was commenced of all land and property assets, the intention again being to identify under-used or surplus assets. This review was completed in March 2002. The key outcomes of the review have been addressed elsewhere in this plan, e.g. the leisure feasibility study, negotiations re the future management of community centres and sports pavilion’s and the disposal of Fort Fareham business park. 66. The Council held a number of residential properties which were acquired in the early 1970’s. The properties have been used by the housing department but are in poorer order than the main housing stock and are expensive to maintain. A policy decision was taken by the former Land and Property Sub Committee on the 18 January 2000 to dispose of these properties as they become vacant. 67. A Best Value fundamental service review of the Council’s commercial portfolio was conducted in 2000 – 2001. The improvement plan resulting from this review includes a review of the appropriateness of each property holding at each rent review / lease renewal. In so doing a continuous programme of property / suitability reviews will be in place. The suitability aspect of the review considers, but is not limited to: • Location • Accessibility • Reason for ownership • Environmental / Sustainability considerations • Safety and security • Space • Fixtures and fittings 68. The Council actively monitors space utilisation at the two key operational properties, i.e. the Civic Offices and the Central Depot. For the Civic Offices a spreadsheet is maintained showing for each floor the total lettable floor space available, the current number of occupants and therefore the space per occupant. The same information is available for the Central Depot but is broken down into office, open and enclosed storage areas. 69. This data has enabled the Council to reduce the net cost of occupying these buildings, and to optimise the utilisation of available space, by taking action to maximise the occupancy and to lease areas to other organisations, e.g. Part of the civic offices have been leased to Hampshire Highways while, part of the depot facility has been leased to a private construction company. In addition, a partnership has been entered into with Gosport Borough Council for the joint provision of Building Control Services across the two authorities. This cross authority service is located at the Civic offices. These actions have ensured that all space within operational property has been utilised to its maximum and increased revenue to the Council. 70. The table below lists the current properties that have been declared as surplus together with the proposed actions concerning disposal: UPRN Property Proposal 0360A Access to land rear of Laburnum Road Reserved for Housing Enabling Scheme 1428 Land adjacent “Cars R Us” Pending adjacent development possible lease to car sales site.2193C Land at Adelaide Place Included within the foundry development targeted to complete 2004 1124A/4 Land at Fleet End Included within the Fleet End management plan. 71. Surplus land and property currently represents: • 2.3% of the total number of properties / land holdings in the portfolio. • 0.3% of the total capital value of the property portfolio. 72. There has been significant improvement in the performance indicators relating to surplus property due to the sale of Fort Fareham Business Park, which produced a capital receipt of £1.47 million.
  11. 11. - 11 - Capital Monitoring 73. The responsibility for monitoring and developing the capital programme is assigned to the Council’s programme officers group who also act as the corporate Asset Management Group. Members are actively involved in the preparation of the capital programme, with proposed projects reported to, and approved by, the Executive. 74. Reports on the progress and performance of the capital programme are made every six months to the Executive. In addition, members are updated on progress via the monthly members’ newsletter. Also, reports on the progress of individual projects are provided regularly as part of the project monitoring procedure. Local Property Performance Indicators 75. The Council has developed its own performance indicators that enable and assist the CPO to interpret whether the process of asset management is working to its potential. Annual reports are made on the Council’s performance against indicators which demonstrate how well property is managed and whether the portfolio’s potential is optimised in terms of usage (surplus properties) and financial return – each of these factors impacting upon service delivery and the Council’s policy priorities. 76. The indicators are: • gross rate of return. • annual management costs. • surplus properties 1. • Surplus properties 2. • Space utilisation. • Disabled access to Council buildings 77. In addition new local performance indicators are being continually developed to build on the information obtained from manager, tenant and user satisfaction surveys and to ensure that continuous improvement targets are agreed and delivered. 78. Performance against the local and national property performance indicators is reported annually to the Policy, Strategy and Finance Overview Panel and the Executive in November. 79. The table below shows the actual performance against the indicators for 2002-2003, together with targets for 2003-2004. Performance Indicator Corporate Objectives Actual 2002- 2003 Target 2003- 2004 Gross rate of return 2,6 6.5% 6.25% * 1 Annual management costs 2,6 13.7% 10.25% Surplus properties as % of total no of properties 2,6 2.3% 2.0% Value of surplus land / property as % of total value of portfolio. 2,6 0.3% 0.25% Space utilisation in operational property 2,6 100% 100% Disabled persons access to Council Buildings 1,3,4,6 10% 15% Stakeholder Satisfaction with Council properties open to the public. 3,6 N/A TBA Floor area per person in m 2 . 2,6 9.9m 2 9.5m 2 * 1 This target will be reviewed in November 2003 to agree a revised target to reflect the fact that performance in 2003-2003 was in excess of the target. Condition Surveys and Monitoring 80. The estates business unit has undertaken stock condition surveys to determine the repairs backlog and the suitability of the property for its intended purpose. All properties have been surveyed and are now being re-surveyed at the rate of 20% per year so that comprehensive condition information can be maintained on a five-year review cycle. 81. The estates business unit prepares a brief report in respect of each property that sets out a costed, planned maintenance schedule for each property. A report on condition and maintenance backlog is made at least annually to the Executive. 82. The estates business unit advise their customers of any additional works that are required to be included in the maintenance and project programme, in particular to comply with health and safety legislation. Advice is also provided concerning the suitability of the building for its intended use.
  12. 12. - 12 - 83. When condition surveys have been completed, reports are presented to both Chief Officers and Members, on an exception basis, on the maintenance issues raised. For example, reports have been prepared in accordance with the approved capital prioritisation process to address the maintenance backlog at the Councils operational property, e.g. in December 2002 the Executive approved a capital project of £80k to upgrade the electrical facilities at the Councils Depot; in March 2003 approval was given to £200k to address urgent maintenance issues at the Civic Offices. 84. In May 2001, the results of a full condition survey on Fareham Leisure Centre, completed in March 2001, were reported to the Leisure Committee. This identified the need for significant expenditure on repairs and maintenance over the next twenty years if it is to remain in good working order. The Council is now investigating the establishment of non profit distributing organisations to operate the Leisure Centre and the Council’s entertainment venue Ferneham Hall which also has a maintenance backlog, which was identified following a condition survey. The aim of this being to address the maintenance backlog in a manner which is in the best financial interests of the Borough and which helps improve leisure facilities in the future. 85. The Executive on 20 January 02 approved the establishment of a Major Repairs and Renewals Fund to address the maintenance backlog identified in the 2002 Asset Management Plan. 86. The condition survey of the public convenience at Cliff Road highlighted that the building was in bad condition and not suitable for its intended purpose. The survey recommended a complete rebuild at a cost of approximately £30,000. A more efficient solution is possible whereby the portable public conveniences at the bus station could be relocated to Cliff Road on completion of the Market Quay development. Benchmarking 87. An important part of monitoring is the comparison of performance and processes with other similar organisations, and with the private sector. To achieve this, the Council is in contact with in the South East Association of Chief Estates Surveyors, who monitor performance across the region, and meet regularly to discuss best practices involved in the delivery of asset management planning. The Council is also represented within the Hampshire Estates Officers group, and attends seminars hosted by the IPF network. The Council’s Head of Estates also holds regular liaison meetings with private sector property professionals in the region. 6.0 Programme and Plan Development and Implementation. General 88. By implementing a corporate approach to asset management, the Council is developing programmes whereby the Council’s assets contribute towards the Council’s objectives of year on year improvement in service delivery. This includes: • Processes for prioritising projects • A rolling programme of condition surveys. • Identification of cross service opportunities Community Strategy 89. The Community strategy is being produced in conjunction with “Network Fareham” and will be an overarching plan to promote and improve the economic, social and environmental well being of local people. 90. The former Policy and Resources Committee on 22 March 2001 approved the initial formulation of action leading to the production of a community strategy for Fareham Borough. The Community Strategy is being produced to the following timescale: • September 2001. Joint workshop held with Hampshire County Council to set up a local strategic partnership. • November 2001. The former Policy and Resources Committee approved the consultative strategy. • March 2002. Article on community strategy published in “Fareham Today” • March 2002 – September 2002. Community consultation programme. • October 2002. Launch of “Towards a Community Strategy” • Autumn 2004. Launch of the Community Strategy.
  13. 13. - 13 - 91. The consultation on the Community Strategy highlighted the need for the Market Quay retail and leisure scheme to be completed, and in particular the requirement for the scheme to include a cinema. As a result of this negotiations took place with the Council’s development partner which resulted in the successful agreement for the inclusion of a five screen cinema. Corporate Vision, Values, Objectives and Action Plan. 92. On 30 January 2003 the Council approved the new values, vision, objectives and action plan for the Council and its service providers to work in the period 2002 – 2007. These objectives are reviewed and refined annually and reported in the Council’s Best Value Performance Plan. The agreed Corporate objectives are summarised below together with examples of the property related actions being followed to achieve these: Objective Examples 1. Protecting and enhancing our environment. To balance conflicting demands to ensure the protection of the environment and the quality of life of the community. 1. Setting targets for the reduction of energy consumption in operational buildings together with appropriate actions, e.g. upgrading of the plant and controls at the Depot facility during 2003- 2004. 2. The works to deal with the contaminated land at Hook Recreation Ground 3. Coast protection works at Hill Head. 2. Maintaining and extending prosperity. To encourage development that adds value to local communities and contributes to the attractive environment of Fareham. 1. Concluding the development agreement for the Market Quay retail and leisure scheme. 2. Enabling the development of the former Foundry site. 3. A safe and healthy place to live and work. To work in partnership to create an environment where people of all ages feel safe and to promote good health. 1. £200,000 added to the capital programme to improve the working environment in the Council’s operational property. 4. Leisure for health and for fun. To work in partnership to ensure that all residents have access to recreational facilities. 1. Provision of w swimming pool in the Western Wards. 2. Investigation of a Leisure Trust to operate the Leisure Centre and / or Ferneham Hall. 5. A balanced housing market. To provide good quality housing with a range of dwelling types to meet local needs through the planning process and ensure that there are supporting social facilities. 1. Sale of the site of the Fareham Community Centre to allow the provision of affordable housing. 6. A dynamic, prudent, progressive and best practice council. To provide modern, inclusive, customer-focused and effective services making use of the latest technologies to minimise cost and improve quality. 1. Building upon Fareham's emerging advantages as a telecommunication hub, Faretec. 2. Encouraging opportunities for start up business, e.g. Fareham Enterprise Centre. Appendix B demonstrates how each category of property holding contributes to the above Corporate objectives. Property Strategy 93. In the autumn of 2000, the Council’s property strategy was extensively reviewed and rewritten. The purpose of the property strategy is to confirm Council policy in the form of policy statements for the Council’s property portfolio (other than the housing stock). The policies cover all aspects of property management including acquisitions, disposal, maintenance and investment decisions. e.g. the decision to construct a centre for technology based business at the Cams Estate followed agreement on the council’s policy with regard to acquisitions. 94. The Corporate Property Officer instigated a fresh review of the property strategy in the Autumn of 2002. The outcome of this was reported to, and approved by, the Policy, Strategy and Finance Overview Panel and the Executive in January 2003. Disposal Strategy 95. A disposal strategy has been produced and was approved by the Policy, Strategy and Finance Overview Panel and the Executive in January 2003. This includes:
  14. 14. - 14 - • Sale of land at the deviation line. • Sale of grazing land at Fort Fareham. • Sale of garden land around the Borough, e.g. at Barnes Lane, Sarisbury. • Sale of former Council house properties. 96. When disposing of property the Council seeks to ensure that it obtains the best possible consideration and benefits in any future development, for example the sale of the grazing land at Fort Fareham included a clause whereby the Council would receive 30% of the value of any future development on the land. Planned Maintenance 97. Planned maintenance programs are being developed for those properties where the Council has the repair obligation. Currently planned maintenance programmes exist for: • The Civic offices • The Broadcut Depot • Public Conveniences • Ferneham Hall • Fareham Leisure Centre • Sports pavilions • Structural improvements to car parks. • Decent Homes programme. 98. The Asset Management Group work closely with the Housing Department to ensure that Housing property is considered along with the Council’s other land and property assets, to ensure that the Councils overall assets are considered as a whole. Housing Stock 99. The Council currently retains its own housing stock of approximately 2,600 dwellings. The housing stock is reasonably modern, in good condition and in high demand. The Housing Revenue Account (HRA) Business Plan sets out the Council’s current and future investment plans to achieve the Decent Homes standard by 2010. The HRA Business Plan covers the 30 year period from 2002 to 2032; it is reviewed and updated annually. The Council will conduct a Stock Options Appraisal in consultation with its tenants by July 2005 to consider and implement the most appropriate option for the future management and investment in the stock. Key Strategies 100. The Council has a number of key service related strategies which contain property related implications. The table below lists these strategies, together with a brief description of the property implications. The diagram that follows shows the relationship between various strategies and the AMP: Key Strategy Corporate Objective Property Implications Community Strategy Corporate Consultation highlighted the need to complete the Market Quay development with the inclusion of a cinema. LA 21 Strategy Corporate Under its LA21 strategy the Council is committed to a reduction in its energy and water consumption and CO2 emissions. The CO2 figures from PI 4d will be used to assist in fulfilling this policy area as it gives a base line against which to measure future performance. Corporate Vision and Objectives Corporate Numerous property implications, detailed in the strategic action plan, e.g. • completion of the Market Quay development, • the consideration of implementing a Leisure Trust. • Provision of a new swimming pool in the Western Wards, • refurbishment of Leisure centre and Ferneham Hall, • enabling the development the Foundry site, • achieve full letting of Faretec Local Plan Review, including the Town Centre Strategy. Corporate The Local Plan Review seeks to reinforce the role of Fareham as an area to live as well as work, shop and visit. Any development therefore needs to be aware of the need to balance residential use with that of retail and leisure, e.g. the development of the foundry site. In relation to the town centre, The Market Quay project will respond to some of the perceived shortfall in retail and leisure and will be a useful catalyst for the development of the evening economy which is currently under-represented if all residents of the Borough are to be encouraged to focus on Fareham as their town.
  15. 15. - 15 - Economic Development Strategy Maintain and Extend Prosperity The strategy aims to assist business development in Fareham, including by direct actions (purchasing, land and property) and by helping business start-ups and step-ups, facilitating business growth by ensuring a range of premises types and sizes, maintaining enterprise and innovation centres and providing serviced small units. Building upon Fareham's emerging advantages as a telecommunication hub, Faretec Contaminated Land Strategy Protect and Enhance Environment The strategy provides for a corporate and integrated approach in dealing with land for which the council is potentially the enforcing authority as well as a landowner. The strategy highlights areas of work within the Council from procurement, risk management, property transactions, land purchases, land acquisitions, leases, marketing of sites, planning(both policy and development control), building control, works and maintenance contracts upon which contaminated land can potentially have a direct impact. Air Quality Assessment Strategy Protect and Enhance Environment Where an Air Quality Management area is declared, theremay be implications for existing Council owned residential accommodation and/or future plans for new Council houses Conservation Area Assessments Protect and Enhance Environment The conservation area assessments • provide assistance in the consideration of planning applications that affect the character or appearance of a conservation area • identify areas that have potential for improvement Community Safety Strategy Safe and healthy To ensure that any new developments minimise the risk to public or property. Food Safety Plan Safe and healthy No property implications. Leisure and Cultural Strategy Leisure for health and fun • The museum building is listed and requires work to be undertaken to comply with DDA. • The Sports Pavilions are below an acceptable standard and require more investment. Replacement changing accommodation needed at Hunts Pond Road. • Sports pavilions are subjected to constant vandalism. • Community Centres require some work to ensure compliance with DDA. Housing Strategy A balanced housing market The second of three Key Housing Aims is “to ensure that housing across all tenures is provided, improved and maintained to high standards” . Objectives specific to the Council’s stock are: • To act as a responsible landlord by ensuring the Council hous ing stock and the immediate environs are maintained to a high standard. • To assist disabled people to live in a home adapted to suit their needs. • To achieve a continual improvement of the energy efficiency To achieve a continual improvement of the energy efficiency of the Borough’s housing stock. The Housing Strategy is supported by a number of sub strategies and plans with property and land implications these include:- The Affordable Housing Strategy, the Private Sector Renewal Strategy, the Empty Property Strategy and the HRA Business Plan. Finance Strategy including the Capital Strategy A dynamic, prudent, progressive and best practice council A sub plan of the Finance Strategy is the Capital Strategy which brings together the strategic capital requirem ents emerging from the service strategies and service performance plans. It determines the Council’s approach to capital investment and sets in place the process for monitoring it to achieve the Council’s policy priorities. Property Strategy A dynamic, prudent, progressive and best practice council All of the Council’s property related policies are contained and expanded upon in the Property Strategy. Best Value Performance Plan A dynamic, prudent, progressive and best practice council Asset management is not generally referred to in the BVPP but reference is, for example made to the Market Quay development and the Service Performance Plan for the Council’s Commercial Portfolio is included.
  16. 16. - 16 - Risk Management Strategy A dynamic, prudent, progressive and best practice council Strategic risk assessment identified need for adequate contingency arrangements in relation to office accommodation and Vehicles and Plant. Procurement Strategy A dynamic, prudent, progressive and best practice council The Procurement Strategy sets out the Council’s approach to the procurement of goods and services including the decisions that need to be made when considering the purchase of assets ((Goods, vehicles, property etc). Relationship of the AMP to other corporate documents Best Value Performance Plan Asset Management Plan Capital Strategy Housing Business Plan Procurement Strategy Vision and Objectives Community Strategy Capital Strategy 101. The Capital Strategy has been developed as a key policy document, which brings together the strategic capital requirements emerging from the service strategies and service performance plans. It determines the Council’s approach to capital investment and sets in place the process for monitoring it to achieve the Council’s policy priorities. 102. A revised capital strategy is included within this single capital pot submission. Social Inclusion 103. The Council has an approved policy with regard to service equality which is attached as Appendix C. The policy aims to ensure that the council actively works towards the elimination of any barriers that prevent equity within the Borough and address’s equality of access to the servi ces provided by the council. 104. In relation to asset management, the Council’s commercial estates service and facilities management service has adopted a service specific social inclusion statement and associated action plan. The former Policy and Resources Committee endorsed this in November 2001. The Prioritisation of New Capital Schemes 105. In line with the ODPM guidance, this section provides an explanation of the approach to prioritising investment in new capital schemes. This is explained in detail in the capital strategy (paragraphs 19 to 22). Proposals have been approved by the Council to earmark capital resources to finance schemes that would make a contribution towards one the priorities identified in the strategic action plan.
  17. 17. - 17 - 106. Although capital resources have been earmarked for these issues, it may well be that the cost of proposed schemes exceed the resources available, and therefore all proposed schemes are subject to a rigorous priority rating procedure. 107. The majority of capital resources are focused on the four over-riding issues discussed in this strategy document. However, it is increasingly likely that the cost of proposed schemes exceed the resources available and therefore all proposed schemes are subject to a rigorous priority rating procedure. 108. The various stages in the procedure are: • Submission of a feasibility report to the Executive • Review of the various options by the Overview Panel • Submission of detailed proposals to the Executive • Review of all proposed schemes by the Executive to agree relative priorities • Final approval for the start of the highest priority schemes by the Executive as and when the necessary capital resources are available and the means to make the capital repayments have been identified. 109. Great importance is placed throughout this procedure on the detailed consideration of all options for service delivery, in particular options that could eliminate (or at least reduce) the need for capital expenditure. 110. The minimum information requirements to be produced for each scheme to form the basis for priority assessment are: • Project Name • Brief Description • Lead Officer • Justification (purpose, objectives, intention) • Other Service Delivery Options • Key Results / Outputs and Outcomes • Details of Capital Costs • The availability of External Funding, including the use of PPP/PFI • Timing • Contribution to Corporate Aims and Objectives • Linkages to Service and Cross Cutting Strategies • Sustainability • Partnership Involvement • Consultations • Revenue Implications (expenditure and income) • VAT Implications • Risk analysis Spending and Outputs / Outcomes 111. Any new investment has to make a significant contribution to key service and cross cutting priorities. To identify the contribution that is capable of being made, service strategies and plans are produced for all of the main service areas. The process for prioritising the potential of new capital schemes arises from these reviews and is fully detailed in the Capital Strategy and this document. 112. The prioritisation process applies to all potential projects and clearly identifies the key results that are to be achieved and the contribution that the project makes to the Council’s corporate objectives. If the project cannot demonstrate a clear contribution to at least one of the corporate objectives together with identified targets for outputs / outcomes then the project is not allocated the required capital funding. 113. In addition to the formal prioritisation procedure, a monitoring process has been established with an individual lead officer responsible for monitoring delivery and performance, and ensuring that progress on projects is reported to the Executive at least twice a year. This monitoring of projects is directly related to the initial project analysis and the delivery of the key results and outcomes. 114. An example of the prioritisation process in practice is Faretec – an economic development initiative in which capital investment was made to provide accessible business space targeted at seed-corn companies wishing to establish in the Fareham area. The objectives to be met were based around economic regeneration and business / employment diversity, but aside from this, a specific performance target of a financial return output of at least 6% income on investment was set. Post completion monitoring highlighted that this target had not been achieved, due to a change in market conditions which resulted in a higher than expected void level in the facility. As a result of this actions
  18. 18. - 18 - have been taken to increase the marketing activity associated with the target to enable the target to be achieved, i.e. to improve the buildings investment performance. The key actions being: • Offering maximum flexibility regards the letting of the space, e.g. all inclusive or conventional terms. • The creation of a marketing area in one of the vacant ground floor suites. • Aiming at a wider target market, i.e. no longer aimed exclusively at technology based companies. • The possible sub division of the first floor. 115. An additional example is the Market Quay Development which has a target to produce a financial return of 12.5% and to rejuvenate the evening economy of the town centre. This target has been achieved through a negotiated agreement. Capital Programme 116. The approved capital programme and total capital expenditure on non-housing services is estimated to be £9 million in the years 2003-04 to 2007-08, as detailed below: Financial Year £000s 2003-04 4,635 2004-05 890 2005-06 750 2006-07 2,019 2007-08 725 TOTAL 9,019 Appendix E details the capital programme for 2004-04 to 2007-08 Resources 117. The basic credit approval (BCA) specifies the amount that local authorities are able to borrow to finance the capital programme. It takes account of the Government’s view on appropriate expenditure levels and the capital receipts available to local authorities. Notification has been received from OPDM that Fareham will receive BCA of £834,000 for 2003/2004. 118. In certain circumstances, supplementary credit approvals (SCAs) are issued for particular projects or types of expenditure. Fareham has received a SCA in respect of at least part of the cost of the works at Hook Recreation Ground to deal with the contaminated land and in respect of the coast protection works at Hill Head. 119. The proposed financing of the capital programme (based on existing projections of available balances) for the years 2003-04 to 2007-08 is set out in the following table: Source of Funds £000s Internal Resources: Direct Revenue Funding 3,250 Capital Funds 3,601 Capital Receipts 1,809 Total of Internal Resources 8,660 External Contributions Government grant towards E- government Developer contributions 200 159 3 5 9 TOTAL 9,019
  19. 19. - 19 - 120. In view of the Council’s commitment to the proper maintenance of their property assets, a building repairs fund has recently been established to provide the necessary finance to cover major repair and refurbishment works in the future. Capital Receipts 121. The disposal of Fort Fareham business park produced a capital receipt of £1.47m in 2002 - 2003. The disposal of the former Whiteley community centre resulted in a capital receipt of £300,000. I addition, the potential sale of the Fareham Community Centre and the re development of the Osborn Road South site could both provide valuable capital receipts over the next 3 – 5 years should they come to fruition. 122. Planned capital receipts over the next four years are: Source 2003-04 £000’s 2004-05 £000’s 2005-06 £000’s 2006-07 £000’s Total £000’s Right To Buy Sales 2,226 2,226 2,226 2,226 8,904 Other Capital Receipts 25 25 25 25 100 Totals 2,251 2,251 2,251 2,251 9,004 123. In addition, the potential sale of the Fareham Community Centre and the re development of the Osborn Road site could both provide valuable capital receipts over the next 3 – 5 years should they come to fruition. Access to Council Buildings 124. In order to ensure that all Council buildings can be accessed by people with disabilities, a programme of works amounting to £165,000 has recently been completed. 125. In June 2003, the Council’s Executive approved the funding required to ensure that the Fareham Museum complies with the Disability Discrimination Act (DDA), thus ensuring the continued provision of the museum service. Strategic Action Plan 126. On 16 December 2002, the Council’s Executive approved a strategic action plan for the Council and its service providers to work to in the period 2002 – 2007. This followed an exercise to review and update the Council’s values, vision, objectives and priority actions to 2007. Many of the objectives resulting from this exercise have been reaffirmed by the consultation on the Community Strategy undertaken with both the general public and the Council’s Local Strategic Partnership partners. These values, vision, objectives and action plan inform the Council’s corporate, service and business planning processes and link directly to the Council’s capital programme. Achievement of the objectives is subject to ongoing performance management and monitoring in accordance with the revised performance management process approved by the Executive on 25 November 2002. 127. The purpose of the strategic action plan attached is to ensure that future service delivery actions and capital revenue expenditure is targeted towards the achievement of objectives and aspirations that have been subject to consultation and meet identified and agreed needs. This action plan further ensures that gaps between where individual services want to be and where they are now are closed. The actions within this Asset Management Plan will be used as a guide to the delivery of the property aspects of the strategic action plan. The strategic action plan is shown in the following table:
  20. 20. - 20 - Ambition Priority 2003 2004 2005 2006 2007 Complete the development of Market Quay and the Town Centre including provision of a cinema High x - - - - - - x Consider the establishment of a leisure trust and implement if appropriate High x - - - - - - x Refurbish existing leisure facilities Medium x - - - - - - - - - - - - - - x Commence development of new leisure facilities Low x - - x Provide a new swimming pool in west Fareham High x - - - - - - - - - - x The evaluation of options for the future management of the Housing Stock. High x - - - - - - - - - - - - - - x Continue to minimise increases in Council Tax Medium - - - - - - - - - - - - - - - - - - - x Introduce full e-government High x - - - - - - - - - - - - - - - - - - x Implement the action plan arising out of the clean and tidy borough review Medium x - - - - - - - - - - x Achieve re-cycling target of 40% of household waste High x - - - - - - - - - - - - - - x Provide neighbourhood facilities for young people Medium x - - - - - - - - - - x Implement a Crime and Disorder Strategy High x - - - - - - - - - - - - - - - - - - x Support the development of the South Hampshire Rapid Transit Low x - - - - - - - - - - - - - - - Implement Local Transport Plan High x - - - - - - - - - - - - - - - - - - - Complete new local development framework High x - - - - - - - - - - - - - - x Support the development of a new Community Hospital High x - - - - - - - - - - - - - - - - - - x Enable development of Foundry site Medium x - - x Achieve full letting or sell Faretec Medium x - - x Develop homelessness hostel High x - - - - - - x Achieve target of no families in bed and breakfast accommodation High x - - - - - - x Debt repayment strategy High x - - - - - - - - - - - - - - x Environmental Improvements Medium x - - x 128. A report was presented to the Executive on 09 June which identified the resources currently available to progress the individual elements of the priority action plan and the outcome of the options appraisal / gap analysis. The following table summarises the current position with regard to the property related aspects of the strategic asset plan, and indicates the resources available to deliver the actions together with the status of the options appraisal for each action.
  21. 21. - 21 - High Priority Actions Option Appraisal / Gap Appraisal Resource Availability Complete the development of Market Quay and the town centre including provision of a cinema Complete. Development Agreement unconditional and construction underway. Resources in place Consider the establishment of a leisure trust and implement if appropriate Establishment of a leisure trust recommended. Capital funding of £1.24m is available over next 5 years for improvements / repairs to the Leisure Centre / Ferneham Hall. Decision from the Executive on 9 June. Resources for set-up costs in place New pool in west Fareham A working group has been set up to progress the scheme and is arranging the necessary design and research to submit an outline planning application. Potential private partners will be approached once outline planning permission has been achieved. Resources to facilitate scheme in place Development of new community hospital Not within the Council’s remit to provide this facility. The Council’s role is to influence the future planning agenda of the Fareham and Gosport Primary Care Trust. PCT to provide resources Achieve target of no families in bed and breakfast accommodation A scheme is being enabled at Broadlaw Walk of 18 flats for the homeless. A scheme to lease 14 flats at West Street, Portchester is being enabled and is subject to planning approval. Capital contributions from this authority are not required to deliver the two schemes. Revenue resources are identified for non property related programmes. Develop homelessness hostel The present Homelessness Hostel at Kings Road Assembly Hall was only intended as temporary provision. Planning approval was given for a new hostel on 15 May 2003. Financial resources for the construction of the hostel are being provided by the Housing Corporation and Eastleigh Housing Association. Medium Priority Actions Option Appraisal Resource Availability Refurbish Fareham Leisure Centre and Ferneham Hall Condition survey complete. Investigation of a leisure trust underway. Resources identified to address the maintenance backlog over the next five years. No funding has been identified for the further £4.75m. needed over 6 – 20 years. The long term capital requirement to refurbish the leisure centre and Ferneham Hall may change depending on whether a Trust option is pursued for either for both venues. Resources in place Enable development of Foundry site On 9 May 2003 the Executive agreed to sell a piece of land to facilitate a development. Officers continue to have discussions with potential developers to facilitate a development on the site. Initial investigations being funded from the Market Quay Capital budget.
  22. 22. - 22 - Achieve full letting or sell Faretec The Executive received a report on Faretec at its meeting on 9 May 2003 which outlined the latest position on lettings, the potential sales value of the building and the further measures and initiatives that were being undertaken to improve the financial return from the Council’s investment. Resources in place Low Priority Actions Option Appraisal Resource Availability Commence development of new leisure facilities Options appraisal not yet underway as this is a low priority scheme. No resources allocated Support the development of the South Hampshire Rapid Transit. The layout of the proposed scheme has been adjusted to accommodate the Market Quay retail and Leisure development. No resources allocated 129. The Council’s lead officer for each of these those priority actions has been instructed by the Executive to: • To identify the capital and revenue resources required for implementation, • To identify on-going revenue costs or savings, • To carry out a detailed risk assessment. 130. Additional background information on some of the schemes in the strategic action plan is included, for information, in Appendix F 7.0 Performance Information National Property Performance Indicators 131. The Council reports against ODPM performance indicators. These indicators enable the Council to identify the success of its property management function and its approach to asset management. 132. The statistical information for the five high-level property performance indicators based on the guidance issued by the ODPM in April 2003 is detailed in the table below: 1A: % Gross Internal floor space in condition categories A – D and 1B: Backlog maintenance by cost expressed as (i) total value (ii) % priority levels 1 – 4. % of Gross Internal % of Cost Status Category GIA A B C D Backlog 1 2 3 Operational Other Land & Buildings 15,567m 2 0% 90.0% 9.8% 0.2% £2,371,977 0% 59% 41 % Non Op General 1,161m 2 18.5% 75.5% 6.0% 0.0% £12,290 0% 77% 23 % This information is used to inform the expenditure decisions with regard to the maintenance backlog as it assists the prioritisation of the work to be undertaken. 2 A B C: Overall average IRR for the industrial, retail and office investment portfolios. a) Industrial 10.7% b) Retail 14.3% c) Agricultural n/a The neighbouring authorities of Portsmouth and Southampton have agreed to use the Public Works Loan Board rate of 7% as the target rate of return. Overall the Council’s investment portfolio exceeds the target rate. 3A: Cost and efficiency of property service provision – total annual management cost per sq metre of the property portfolio. £1.10
  23. 23. - 23 - This provides a means of comparing year on year performance. 4 A B C D: Repair, maintenance, energy and water efficiency. A) Repair & Maintenance costs per square metre £23.69 B) Energy costs per square metre £9.45 C) Water costs per square metre £1.26 D) CO 2 Emissions in tonnes of CO 2 per square metre 0.14 Under its LA21 strategy the Council is committed to a reduction in its energy and water consumption and CO2 emissions. These figures will be used to assist in fulfilling this policy area as it gives a base line against which to measure future performance. 5 A & B: Cost and time predictability on new capital projects. A) Cost predictability % of out turn falls within +/- 5% of estimated out turn. 100% B) Time predictability % of projects falling within + 5% of estimated timescale. 100% 133. The data collected for the property PI’s has been recorded within the Council’s existing systems. The longer term aim being to incorporate the data within the integrated property management system to allow a more detailed analysis. 134. The performance indicators are compared with: • authorities in the South East Association of Chief Estates Officers (SEACES) • other local authorities within the Hampshire Estates Officers group • Data submitted to the IPF property network • the neighbouring authorities of Havant and Eastleigh 135. The purpose of this comparison being to: • assess relative performance. • identify areas for improvement. • assist in determining future targets • look for best practice. 136. Targets for continuous improvement, together with an associated continuous improvement plan, were reported to the Executive for approval in December 2002. A revised action plan will be submitted in December 2003. 137. The internal rate of return calculation is used to assist in assessing whether the return on individual properties justifies the expenditure and therefore will be of benefit in identifying potentially surplus property. In addition, it will be used to compare different types of investment as comparisons will be possible on a common basis. In the future when the Council considers whether to acquire property, the IRR will be the method used to compare the asking price with the present value. 8.0 Conclusion 138. This plan has outlined the arrangements in place and under development to improve corporate asset use, with the ultimate aim of improving service delivery. There will be ongoing development of the asset management process over the forthcoming year, with a particular emphasis on implementing the property management system, acting upon the information provided by the property performance indicators and concluding the construction of the Market Quay development. 139. The Asset Management Plan clearly shows that the Council has a service wide understanding of the Corporate ownership of assets, and demonstrates a high priority to asset management with the identification the resources required to deliver the Council’s policies and priorities.
  24. 24. - 24 - Appendix A Corporate Vision, Values and Objectives Vision Statement Fareham - the prosperous, safe and attractive place to be Values Fareham has become a prosperous, safe and attractive place to live and work. We want to preserve all that is good about Fareham, whilst increasing prosperity. The vision is guided by a set of values: • Preserving people's dignity and focusing on what residents want • Enhancing prosperity and conserving all that is good • Being efficient and effective and providing value for money • Leading our community and achieving beneficial change • Listening and being responsive to residents. Corporate Objectives Objective One - Protecting and enhancing our environment To balance conflicting demands to ensure the protection of the environment and the quality of life of the community. Objective Two - Maintaining and extending prosperity To encourage development that adds value to local communities and contributes to the attractive environment of Fareham. Objective Three - A safe and healthy place to live and work To work in partnership to create an environment where people of all ages feel safe and to promote good health. Objective Four - Leisure for health and for fun To work in partnership to ensure that all residents have access to recreational facilities. Objective Five - A balanced housing market To provide good quality housing with a range of dwelling types to meet local needs through the planning process and ensure that there are supporting social facilities. Objective Six - A dynamic, prudent, progressive and best practice council To provide modern, inclusive, customer-focused and effective services making use of the latest technologies to minimise cost and improve quality. .
  25. 25. - 25 - Appendix B CONTRIBUTION OF PROPERTY TYPES TO CORPORATE OBJECTIVES Property Category Objective No Corporate Objective 1 Protecting and enhancing our environment.Cemeteries 3 A safe and healthy place to live and work. 1 Protecting and enhancing our environment.Parks and Open Spaces 4 Leisure for health and for fun. Entertainment, i.e. Ferneham Hall 4 Leisure for health and for fun. 3 A safe and healthy place to live and work.Allotments 4 Leisure for health and for fun. 1 Protecting and enhancing our environment.Foreshore 3 A safe and healthy place to live and work. 4 Leisure for health and for fun.Fareham Leisure Centre 3 A safe and healthy place to live and work. 1 Protecting and enhancing our environment. 3 A safe and healthy place to live and work. Community Centres 4 Leisure for health and for fun. 1 Protecting and enhancing our environment.Car Parks 2 Maintaining and extending prosperity. Public Conveniences 1 Protecting and enhancing our environment. Civic Offices 6 A dynamic, prudent, progressive and best practice Council. Depot 6 A dynamic, prudent, progressive and best practice Council.
  26. 26. - 26 - Appendix C SOCIAL INCLUSION POLICY STATEMENT “Fareham Council welcomes the diversity of its population. It recognises that people from socially excluded groups may experience discrimination because of race, age, gender, gender reassignment, marital/family status, sexual orientation, disability, low income and other factors. The Council is committed to working to achieve equality of opportunity for all its communities and service users. A Corporate Equality Plan (CEP) setting out time-scales and allocated resources has been developed. This has been achieved by each service producing action plans that will ensure that: • all departments and services are committed to the Corporate Equality Plan; • all employees take positive action directed at preventing discrimination in service delivery and ensuring the provision of culturally sensitive, appropriate and equally accessible services; • all employees implement the Council’s dignity at work policy; • services to socially excluded groups are of the same quality as services to other sectors of the community; • promotion of equality of opportunity is present in all employment practices in line with Council policies; • all employees have the opportunity to access adequate and appropriate training on social inclusion and equality issues; • robust mechanisms are in place to record, review and monitor all service delivery and employment policies, results and performance to ensure on-going effectiveness; • all Best Value service reviews consider the involvement, consultation and challenge of service users or potential service users from socially excluded and hard to reach groups where appropriate and include social cohesion data when assessing gaps in service provision; • representation of socially excluded groups is considered in the design and delivery of services; and • consideration is given to the promotion of its services and its image so that the diversity of the local population is properly reflected in all materials.”
  27. 27. - 27 - APPENDIX D: PERFORMANCE MANAGEMENT FRAMEWORK April May June July Aug Sept Oct Nov Dec Jan Feb March Corporate Consultation Annual survey Review survey results Publish survey results Corporate Vision and Objectives Review & agree for next year Employee briefs by Leader Service Plans New Plans start Report on previous Plans to members Agree Plans for next year Old Plans end Business Plans Review plans and update Budgets Start of year Review out-turn for last year Agree Finance Strategy for next year Agree service budgets for next year Agree Council Budget to start in April End of financial year Management Reviews CX meets each Director CX meets each DMT CX meets each Director CX meets each Director CX meets each DMT CX meets each Director CX meets each Director CX meets each DMT CX meets each Director Organisational Performance CXMT monitor CXMT monitor CXMT monitor CXMT monitor Performance reporting to members Report (part of BVPP) Report Report (part of service plan) Report Individual Objectives PDR’s PDR’s PDR’s Training & Development T&D Plans produced
  28. 28. - 28 - APPENDIX E CAPITAL PROGRAMME SUMMARY – 2003-04 TO 2007-08 £000s Policy, Strategy and Finance Market Quay 1,726 Henry Cort Millennium Scheme 400 Depot – Electrical Upgrade 85 Vehicles and Plant – Rolling Programme 1,500 Information Technology/Systems – Rolling Programme 1,000 Integrated Property Management System 36 E-Government 200 Replacement Revenues System 25 CCTV System 88 Improved Access for People with Disabilities 30 Civic Offices 202 Matched Funding Account 494 Policy, Strategy and Finance – Total 5,786 Leisure Locks Heath - Release Of Restrictive Covenants 95 Western Wards Swimming Pool 30 Ferneham Hall – Major Repairs 360 Fareham Leisure Centre – Major Repairs 880 Play And Parks Schemes – Rolling Programme 500 Parks Strategy – Developer Contribution Schemes 159 Hill Head Sailing Club – Matched Funding Grant 20 Gosport And Fareham Rugby Club – Matched Funding Grant 25 Neville Lovett Community School – Matched Funding Grant 20 Bursledon Brickworks – Matched Funding Grant 5 Leisure – Total 2,094 Planning and Transportation Environmental Improvements – Highlands Road Shopping Centre 65 Environmental Improvements - Annual Provision 200 Osborn Road M/S Car Park - Pay On Foot System 360 Car Park Improvement Programme 375 Planning and Transportation - Total 1,000 Health and Environment Safety of Memorials in Cemeteries 139 Health and Environment – Total 139 OVERALL TOTAL 9,019
  29. 29. - 29 - Appendix F Background information on major property related projects Leisure Facilities A proposal to improve the quality of leisure provision in the Borough, as well as reducing the costs associated with the maintenance and operation of existing leisure facilities was approved by the former Policy and Resources Committee in June 2001. Approval was granted for a feasibility study, including a public consultation exercise, into the future provision of leisure and community facilities in the Borough. The Executive decided that further investigations should be carried out into the implications of transferring the management of Ferneham Hall and the Leisure Centre to a Leisure Trust following a study by a joint Project Team into the future provision of leisure facilities in the Borough. The study included a review of the performances of both venues. The review concluded that the Leisure Centre was performing well, as shown by: a) its overall financial performance, year by year; b) its performance in the top quartile of similar leisure centres for most performance indicators; c) good reports from ‘mystery visits’; d) good customer satisfaction ratings in most categories. The review of Ferneham Hall recognised that: a) the Hall was performing well when compared to similar venues; b) Customer satisfaction levels were good. However, the reviews also showed that: a) both venues need to attract new users with a wider age profile; b) the capacity to increase usage or reduce costs will be significantly limited without substantial investment in new facilities; c) the Council’s ability to make this investment will be severely limited; d) the annual revenue costs of operating both venues are likely to continue to rise. The revenue budgets for 2003/04 show a net cost to the Council for Ferneham Hall of £560,200 and for the Leisure Centre, £748,860 – totalling £1,309,060. Condition Surveys commissioned for both venues in 2001 showed that, generally, both buildings were in a good state of repair. However, it is estimated that it will be necessary to spend some £1.98 million on the fabric of the Leisure Centre over the next twenty years for it to remain in working order and £3.83 million on the fabric of Ferneham Hall. In brief, therefore, the operation of the Leisure Centre and Ferneham Hall is currently costing the Council, annually, over £1.3 million and the capital budgets required to maintain both venues over the next twenty years will total in the order of £5.8 million. This is a significant challenge when taken in the context of the Council’s overall financial position and it is clear that the Council’s ability to meet this commitment and make the investment needed to continue to provide first-class facilities will be severely limited. There are also other challenges on the horizon which will have an impact on the performance of both venues. They include the growth of private leisure clubs, such as the David Lloyd Sports Centre at Port Solent; the multi-screen cinema and leisure facilities that will form part of the Market Quay development; and the proposal for a new swimming pool in the Western Wards. All will be chasing a limited customer base and action will be needed, in any event, to ensure that both the Leisure Centre and Ferneham Hall can continue to compete. Light Rapid Transit Light Rapid Transit (LRT) is a public transport system using modern electric trams. It is proposed to introduce LRT to link the centres of Portsmouth, Gosport and Fareham by a new tramway using much of the old Fareham – Gosport railway line and passing under the mouth of Portsmouth Harbour through a tunnel. Central Government approval has been obtained for the £270M project, which will be funded by private and public sector investment. It is anticipated that the LRT system will be operational by 2006.
  30. 30. - 30 - The LRT will come into the heart of Fareham town centre with a terminal planned adjoining Fareham bus station. The threat from LRT is that shoppers will easily be able to travel to Commercial Road, Portsmouth. Anticipating this threat Fareham have embarked upon a strategy to regenerate Fareham town centre so that a retail and shopping experience will be available different to that which exists in Portsmouth and Gosport, and which will maintain the loyalty of existing shoppers and attract new ones from other competing centres. The regeneration strategy consists of the refurbishment of the indoor Fareham shopping centre, completed in 1998, creation of the Henry Cort sculptural park in 2000 which links the north and south sides of West Street and the development of Market Quay as a complimentary retail and Leisure scheme on course to open in Autumn 2004. The Market Quay retail and leisure development: The proposed Market Quay leisure and associated retail development to be built in partnership with a private developer will complete the redevelopment of the town centre and provide a financial return to the council, thus contributing to the council’s corporate objectives. In November 2000, the Council concluded negotiations with Miller / CTP (Fareham Ltd), their development partner, and signed a development agreement to enable the proposed 150,000 square foot retail and leisure scheme to proceed. The agreement was conditional upon Miller / CTP (Fareham Ltd) obtaining planning consent funding and letting 65% of the proposed retail and leisure space. The development agreement became unconditional and construction commenced in February 2003. Phase one of the development will be complete by Summer 2003, with phase two completing in Autumn 2004. The Council will lease the Market Quay site by way of a 200-year ground lease. The Council will r etain all of the income from the proposed 308-space car park and receive 12.5% of the retail and leisure rental income. Foundry Site The Council are a party to the redevelopment of the former foundry site in Quay Street, located to the south east of the Market Quay site. A developer and supermarket operator have jointly approached the Council with a proposal to develop a food store. The developer will require the purchase of a small amount of Council land and the lifting of the Compulsory Purchase Order put in place for the Market Quay Development and which affects properties in the Quay Street area. The proposed development would complement the new Market Quay Development and will contribute to the vitality and viability of the Town Centre as a whole. The provision of a food store on the site will be welcomed by the residents of Fareham, who lost a food store in the Fareham Shopping Centre following its refurbishment, and who have asked the Council to try and facilitate the replacement of this facility within the Town Centre. The prospects of a food store being developed on the Foundry Site will achieve this objective. The Council’s Executive in July 2002 agreed to include the Council’s ownerships in the land assembly initiative for the Foundry site redevelopment. In May 2003 the Executive resolved to accept an offer for the Council’s land ownerships; upon entering into a binding Development Agreement with the food store operator to agree that the CPO notices to treat affecting land in Quay Street are formally withdrawn and that the Council works with all the parties to assist in the delivery of the proposed development. Western Wards Swimming Pool A review of Leisure Services in the borough was carried out in late 2001. This identified support for the possible provision of swimming facilities in the Western Wards. Following the identification of a possible site on open space to the north of the Lockswood Centre, Locks Heath, an attitude survey was carried out in the Western Wards to establish the basis on which such a facility should be operated. This found the greatest level of support in favour of a joint public and private facility offering private fitness facilities, together with a public swimming pool offering swimming sessions at a cost of around £2.30, i.e. comparable to the cost of other similar public facilities in Fareham.
  31. 31. - 31 - The land identified as suitable for the facility is owned by Fareham Borough Council, and is currently used as public open space. The site is subject to a restrictive covenant in favour of the owners of Lockswood Shopping Centre, which effectively prevents development. The Council has negotiated an agreement with the owners of the shopping centre for the release of this covenant, and the grant of rights necessary to carry out an appropriate leisure development, in consideration of a payment of £100,000. This agreement is valid for a period of 5 years from the date it is entered into. The facility is anticipated to provide the following facilities: • Administrative space • Fitness suite to cater for some 75 people • Exercise studio • 25M Swimming pool • Learner pool • Changing facilities • Creche • Viewing areas • Storage The overall size of the facility is likely to be in the order of 2,500m2 gross It is the Council’s intention to market the leisure opportunity to potential private sector partners to secure the development once an acceptable planning consent has been secured. Car Park Improvements The Council has embarked upon a major programme to improve the safety and environment of the town centre multi-storey car parks prompted by the public and the local shopping centre management. The works carried out include:- • Upgrading the lighting in both multi-storey car parks. • Refurbishment of Osborn Road multi-storey car park lifts. • Provision of colour-coded deck levels to Osborn Road multi-storey car park and colour-coded surfacing of Level 1. • Introduction of a CCTV system to Osborn Road multi-storey car park. The Executive asked officers to investigate extending the CCTV system in Osborn Road multi- storey car park in the current year and to introduce a new system of charging known as ‘Pay on Foot’ at the request of the shopping centre management.